Mortgages and Adverse Credit

amy16195

Good morning all,
I'm currently renting a house. My credit history is not too great. An ex partner took out accounts in my name which he didn't pay in 2013 and 2014. The latest default was December 2014. So they're all over three years old. He also managed to land me with a joint CCJ which they didn't give until 11/2015. I'm paying these debts one by one, which shows on my report as the balances are reducing. I have two open credit cards. One with a limit of £2500 and one of £450 (just opened). I use these cards for small purchases as I hope this will make the companies want to increase the limit which has worked so far. I also have a catalogue account with a limit of £2500 which I don't spend on. I also owe £5900 on my car which I have kept up with payments for.

Am I likely to get a mortgage through a broker anytime soon? (not immediately) or am I likely to have to wait 4 years for the CCJ to have gone? I have £22,000 and am now saving a minimum of £400 per month to add to this. I only earn 22,000 thoygh so would be looking at shared ownership rather than buying a whole property.

Also, if I did get a mortgage in the next few years with a higher interest, could I switch providers after a few years when I have better credit?

Sorry for the long post and thank you for anyone who gets back to me

ACG

There might be options with a 10% deposit.
15% deposit and you would have more options and potentially better rates available to you.

Why not report the ex for fraud and get the defaults and things taken off? There is no way I would be paying off someone elses debts and I would be reporting them to the police to teach them a lesson if nothing else.

ashe

Was it fraud, or did you let him open them and he then ran the accounts poorly?

If you have a good level of deposit saved up already I would look to service the debt faster rather than continuing to build up deposit, as you will be paying interest on the debt. Having a large amount in savings will be good for you in the meantime, but I'd rather owe less/clear debt sooner and show good history from that point on personally, than increase deposit size and pay debt slower, meaning its on your file longer as an outstanding balance.

amy16195

I'm almost sure they wouldn't take me seriously now. I mean, who reports someone three years later after paying off the debts!? I wouldnt believe my own story if it wasn't me! And the worst debt (the CCJ) was an account in both of our names which he was supposed to pay. I fully signed up for that one and from the things I've read, CCJs are worse than defaults...

I guess I'd want to borrow around £100,000 so hopefully by that time I will have a £30,000 deposit (30%) and owe much less on the car. I applied through the mortgage people yesterday online and sent them a copy of my credit file etc.but they haven't got back to me yet. I fully expect to be declined.

Thank you for the reply

ACG

If they can not place you with a 30% deposit, find a new broker. There will definitely be options out there.

amy16195

Thank you for the reply. The debts are all now defaults and I'm not paying interest on them. They were phone contracts and things rather than credit cards. I only have around £1000 left to pay and I'm currently paying £100 a month.

I took the account with the CCJ out as well so that one was my fault. Trusted him to pay it. Stupid, I know. I was 19.

I expect to have a 30% deposit by November when the CCJ will be three years old.

amy16195

Thank you. I'm not sure which brokers to trust though. And I don't particularly want to pay someone to find me a mortgage for them be rejected and out of pocket by £100s. Do they charge first or do they find you a mortgage before charging money?

[Deleted User]

amy16195 wrote: »

I only have around £1000 left to pay and I'm currently paying £100 a month.

If you have the funds, get it cleared. Show lenders that you don't need to drag out old defaulted debts.

ACG

Some charge upfront, others charge at the back end and some split their costs up to charge at different stages.

Im with you, I would be a pit annoyed spending a fairly large chunk of money and having nothing to show for it. So dont be afraid of asking to delay the fee until offer or completion. They may agree, they may not but if not there is nothing stopping you trying others.

ashe

amy16195 wrote: »

Thank you for the reply. The debts are all now defaults and I'm not paying interest on them. They were phone contracts and things rather than credit cards. I only have around £1000 left to pay and I'm currently paying £100 a month.

I took the account with the CCJ out as well so that one was my fault. Trusted him to pay it. Stupid, I know. I was 19.

I expect to have a 30% deposit by November when the CCJ will be three years old.

You could pay that debt off within 2.5 months and then continue to build your deposit value. Instead, you're maintaining a debt for another 10 months. Surely looks better to satisfy that outstanding debt even if its not being charged interest?

Also I would not worry about those events being years ago. I would absolutely report it to the police. A quick google search tells me:

Under section 32 of the Limitation Act 1980, where there has been fraud, the period of limitation (usually 6 years depending on the nature of the proceedings) does not begin to run until the plaintiff has discovered the fraud, concealment or mistake (as the case may be) or could with reasonable diligence have discovered.

So you have plenty of time.

amy16195

Thank you everyone for the advice. That's what I'll do. I will pay it all over the next few months and then try again.

One of the debts was a pay day loan in Feb 2014. I was declined for a mortgage with the mortgage people because of this and still owing money to debtors still (like you said). So I guess getting them is a no until 2020. I will clear my debts and try somewhere else...